Article
How the new markets tax credit (NMTC) stimulates businesses and communities
July 24, 2022 · Updated Feb. 21, 2023
The NMTC provides businesses across the United States with flexible financings based on various qualifying factors. Organizations can use the proceeds of NMTC financing to help finance an expansion or relocation, provide equipment financing, or provide working capital.
Explore some frequently asked questions related to the NMTC:
- What is the NMTC?
- What are the benefits of the NMTC?
- Who acts as NMTC investors?
- What’s the economic impact of the NMTC?
- What projects qualify for NMTC financing?
- When does the application process for NMTC financing begin?
- When must NMTC proceeds be spent?
- Is there a minimum or maximum NMTC project size?
- Where does the rest of the capital come from if NMTC equity only provides a portion of the total capital needed?
- Do all an organization’s locations have to qualify for NMTC?
- Is new construction required to get NMTC financing?
- Do new markets tax credits differ from state to state?
- How are NMTCs different from opportunity zones (OZs)?
- What is the compliance period for NMTC transactions?
- What are the benefits of the NMTC to the investor?
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.